The Mashantucket Pequot Tribe, the owner of Foxwoods, has announced a deal with its lenders which will allow breathing room as it struggles with debt of more than two billion dollars. WNPR’s Harriet Jones reports.
The tribe went substantially into debt as it built the MGM Grand at Foxwoods, a spectacular new casino which opened in May 2008, just before the recession hit. Slot and table game revenues from both properties have now been on a downward slide almost every month for more than a year.
The Mashantuckets have been attempting to restructure their debt, and now the tribal council says it has entered into a forbearance agreement with its senior lenders. That agreement will extend through January 20th 2010, but the council gave few other details of what the deal entails.
The tribe has one revolving line of credit totaling 700 million dollars that is due in full in July next year. The tribe says the new agreement should have no impact on operations at Foxwoods or MGM Grand.
The financial crisis has already led to strife within the council – last month Michael Thomas, the council’s chair was suspended and placed on administrative leave after speaking about what he called dire financial times. The Day of New London is now reporting that Thomas has since been expelled from the council.